@techreport{Binz2008Financial,
abstract = {We analyze financial constraints for R&D, where we account for heterogeneity among investments which has been neglected in previous literature. According to economic theory, investments should be distinguished by their degree of uncertainty, e.g. routine R&D versus cutting-edge R&D. Financial constraints should be more binding for cutting-edge R&D than for routine R&D. Using panel data we find that R&D spending of firms devoting a significant fraction of R&D to cutting-edge projects is curtailed by credit constraints while routine R&D investments are not. This has important policy implications with respect to the distribution of R&D subsidies in the economy.},
address = {Mannheim},
author = {Hanna L. Binz and Dirk Czarnitzki},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {O32; O31; 330; R&D; Financial Constraints; Panel Data; Forschungsfinanzierung; Verschuldungsrestriktion; Industrielle Forschung; Deutschland},
language = {eng},
number = {08-005},
publisher = {Zentrum f\"{u}r Europ\"{a}ische Wirtschaftsforschung (ZEW)},
title = {Financial Constraints: Routine Versus Cutting Edge R&D Investment},
type = {ZEW Discussion Papers},
url = {http://hdl.handle.net/10419/24675},
year = {2008}
}
